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OREGON DEPARTMENT OF EDUCATION

DIVISION 26

PUBLIC CHARTER SCHOOLS

581-026-0005

Definitions

(1) “Applicant”: An applicant
means any person or group that develops and submits a written proposal for a public
charter school to a sponsor.

(2) "District School Board":
The board of directors of a common school district or a union high school district
(ORS 332.002(1)).

(3) “Public Charter
School”: A public charter school means an elementary or secondary school offering
a comprehensive instructional program operating under a written agreement entered
into between a sponsor and an applicant and operating pursuant to ORS 338.

(4) “Sponsor”:
A sponsor of a public charter school means:

(a) The board of the common
school district or the union high school district in which the public charter school
is located that has developed a written charter with an applicant to create a public
charter school.

(b) The State Board of Education
pursuant to ORS 338.075.

(c) An institution of higher
education pursuant to ORS 338.075.

(5) “Virtual Public
Charter School”: A public charter school as defined in ORS 338.005(6) and
581-026-0300.

(1) An applicant must submit proposals
to the local school district board and the State Board of Education.

(2) Upon receipt of a proposal
from an applicant, the school district board will determine whether the proposal
addresses, at least minimally, all of the required components as set out in ORS
338.045(2) and (3). Within 30 business days of the receipt of a proposal, the school
district will notify the applicant as to the completeness of the proposal. A proposal
that included, for example, a reprinting of the charter school statutes as its response
to a required component, would not minimally address that component and would not
be complete. A proposal that addressed a required component based on an incorrect
budget assumption or in a manner that is unsatisfactory to the local school district
would nonetheless be complete.

(a) If the district deems
a proposal to be incomplete, the district must identify the specific elements that
are not complete and provide a reasonable opportunity to complete the proposal.

(b) The district may disapprove
the proposal if the applicant does not provide a proposal that is complete within
the reasonable opportunity as provided in subparagraph (a) of this paragraph.

(c) For a proposal that has
been disapproved under (b), the applicant may appeal the decision to the State Board
of Education within 30 days of the disapproval. The State Board may review the proposal
only for completeness and may determine that the proposal is:

(A) Not complete and uphold
the decision of the school district board; or

(B) Complete and remand the
proposal to the school district for consideration.

(3) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct a timely appeal process. This
delegation includes issuing a final order. An order issued by the Superintendent
or designee shall be considered an order in other than a contested case under ORS
183.484. The final order shall:

(a) Uphold the decision of
the school district board; or

(b) Remand the proposal to
the school district for consideration.

(4) The Superintendent shall
issue a final order within 30 days of receiving the notice of appeal from the applicant.
The Superintendent shall send a copy of the final order to the applicant and the
school district.

(1) Within 60 days after the notification
to the applicant of the school district's receipt of a completed proposal or a final
order issued by the Superintendent of Public Instruction remanding the proposal
to the school district for consideration, the school district board must hold a
public hearing on the proposal in accordance with Oregon public meeting laws (ORS
192.610 through 192.695, 192.710, and 192.990).

(2) The school district board
must evaluate the proposal in good faith using the following criteria:

(a) Demonstrated, sustainable
support for the public charter school by teachers, parents, students and other community
members, including comments received at the public hearing held under subsection
(1) above;

(b) Demonstrated financial
stability of the public charter school, including the demonstrated ability of the
school to have a sound financial management system in place at the time the school
begins operating;

(c) Capability of the applicant,
in terms of support and planning, to provide students with comprehensive instructional
programs;

(d) Capability of the applicant,
in terms of support and planning, to provide academically low achieving students
with comprehensive instructional programs;

(e) The adequacy of the information
provided as required by ORS 338.45 (2) and (3);

(f) Whether the value of
the public charter school is outweighed by any directly identifiable, significant
and adverse impact on the quality of the public education of students residing in
the school district where the public charter school is located;

(g) Whether there are arrangements
for any special education and related services for children with disabilities pursuant
to ORS 338.165;

(h) Whether there are alternative
arrangements for students and for teachers and other school employees who choose
not to attend or who choose not to be employed by the public charter school; and

(i) The prior history, if
any, of the applicant in operating a public charter school or in providing educational
services.

(3) Within 30 days of the
public hearing, the school district board must either approve or deny the proposal.
Written notice of the decision must be sent to applicants. Such notice must include
reasons and suggestions for remediation for all proposals that are denied. The school
district board may provide a reasonable opportunity to resubmit the proposal.

(4) An applicant may amend
and resubmit the proposal to the school district board.

(5) The local school board
must approve or disapprove the resubmitted proposal within 30 days of receipt.

(6) An applicant whose resubmitted
proposal is not approved by the local school board may request a review of that
decision by the State Board of Education within 30 days of the disapproval. When
the State Board of Education receives an appeal under this subsection, the board
may review the resubmitted proposal only to determine whether:

(a) The school district board
used the process required by OAR 581-026-0050 and 581-026-0055 in denying the proposal;

(b) The resubmitted proposal
meets the criteria described in subsection (2) of this rule; and

(c) The reasons stated by
the school district board for the denial are valid and align with the criteria described
in subsection (2) of this rule.

(7) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct a timely appeal process. This
delegation includes issuing a final order. An order issued by the Superintendent
or designee shall be considered an order in other than a contested case under ORS
183.484. The final order shall:

(a) Uphold the decision of
the school district board to disapprove the resubmitted proposal; or

(b) Remand the resubmitted
proposal to the school district board for reconsideration.

(8) The Superintendent shall
issue a final order within 30 days of receiving the notice of appeal from the applicant.
The Superintendent shall send a copy of the final order to the applicant and the
school district.

Within 60 days of a final order issued
by the Superintendent of Public Instruction remanding the resubmitted proposal to
the school district for reconsideration, the school district board must evaluate
the resubmitted proposal in good faith using the following criteria:

(1) Demonstrated, sustainable
support for the public charter school by teachers, parents, students and other community
members, including comments received at the public hearing held under OAR 581-026-0055
(1);

(2) Demonstrated financial
stability of the public charter school, including the demonstrated ability of the
school to have a sound financial management system in place at the time the school
begins operating;

(3) Capability of the applicant,
in terms of support and planning, to provide students with comprehensive instructional
programs;

(4) Capability of the applicant,
in terms of support and planning, to provide academically low achieving students
with comprehensive instructional programs;

(5) The adequacy of the information
provided as required by ORS 338.045 (2) and (3);

(6) Whether the value of
the public charter school is outweighed by any directly identifiable, significant
and adverse impact on the quality of the public education of students residing in
the school district where the public charter school is located;

(7) Whether there are arrangements
for any special education and related services for children with disabilities pursuant
to ORS 338.165;

(8) Whether there are alternative
arrangements for students and for teachers and other school employees who choose
not to attend or who choose not to be employed by the public charter school; and

(9) The prior history, if
any, of the applicant in operating a public charter school or in providing educational
services.

(10) The school district
board must either approve or deny the resubmitted proposal. Written notice of the
decision must be sent to applicants. Such notice must include reasons and suggestions
for remediation for all proposals that are denied.

(11) An applicant whose resubmitted
proposal that has been reconsidered by the school district board and disapproved,
may request the State Board of Education review the decision under the procedure
set out in OAR 581-026-0065.

(1) An applicant whose resubmitted proposal
to start a public charter school is disapproved following reconsideration may request
the State Board of Education review the decision of the school district board within
30 days of the disapproval.

(2) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct review. This delegation to
the Superintendent includes, but is not limited to:

(a) Determining the form, contents
and timelines of the petition for review;

(b) Determining the records
required for review and ordering the production of those records from either the
applicant or school district board and establishing timelines for the production
of those records;

(c) Requiring the applicant
or school district board to respond to written or oral inquiries related to board
review; and

(d) Determining at any time
during the review process to reject a review request if in the judgment of the Superintendent,
the applicant fails to reasonably comply with the administrative review processes
of the Superintendent.

(3) The Superintendent may review
the decision only to determine whether:

(a) The school district board
used the process required OAR 581-026-0060; and

(b) The proposal meets the criteria
described in OAR 581-026-0060 (1); and

(c) The reasons stated by the
school district board for the denial are valid and align with the criteria described
in OAR 581-026-0060 (1).

(4) Following a review described
in (9), the State Board of Education may:

(a) Uphold the decision of the
school district board to disapprove the resubmitted proposal;

(b) Remand the resubmitted proposal
to the school district board for reconsideration if the school district board and
the applicant agree to the remand; or

(c) Consider becoming the sponsor
of the public charter school if the applicant agrees to the sponsorship.

(5) At the conclusion of the
administrative review process the Superintendent shall recommend in writing to the
State Board to:

(a) Uphold the decision of the
school district board to disapproved the resubmitted proposal; or

(b) Remand the resubmitted proposal
to the school district board for reconsideration if the school district board and
the applicant agree to the remand; or

(c) Sponsor the public charter
school upon the terms in the proposal or upon such other terms specified.

(6) The State Board will consider
the recommendation of the Superintendent and any other information it deems relevant
and determine based on the requirements of ORS 338 to have the State Board sponsor
the public charter school.

(a) If the State Board decides
to consider the recommendation of the Superintendent to sponsor the public charter
school, the State Board will complete a rigorous evaluation of the proposal as defined
in State Board policy.

(7) The decision of the State
Board to uphold the school district board decision to disapproved the resubmitted
proposal will be based on substantial evidence in the record and will be made within
75 days of receipt by the State Board of the Superintendent's recommendation, unless
extended for good cause.

(8) An applicant may seek judicial
review of an order of the State Board of Education pursuant to ORS 183.484.

(1) School district boards, the State
Board, and Institutions of Higher Education that approve a proposal will be considered
the sponsor of the public charter school defined in the proposal.

(2) An applicant whose proposal
has been approved by the sponsor must, in cooperation with the sponsor, prepare
and execute a charter that addresses, at a minimum, the information that is included
in the proposal and:

(a) State any reasonable
pre-opening requirements or conditions for the public charter school to ensure they
meet all health, safety, and other legal requirements prior to opening and are prepared
to open smoothly;

(b) State how the public
charter school shall receive any state and federal funds distributed to districts
other than the negotiated percentage of the charter school rate as required by ORS
338.155;

(c) Establish the performance
standards under which the public charter school will be evaluated, using objective
and verifiable measures of student achievement as the primary measure of school
quality;

(d) Define the sources of
academic data that will form the evidence base for ongoing and renewal evaluation;

(e) Include expectations
for appropriate access, education support services, and coordination with the district
in which the public charter school is located for students who may qualify for additional
education services; and

(f) Include clear, measureable
performance standards to judge the effectiveness of mission-specific performance
measure and metrics that credibly demonstrate the public charter school’s
success in fulfilling is mission and serving its students.

(3) Notwithstanding subsection
(2), an applicant and sponsor may agree to change elements of the proposal prior
to including them in the charter and may agree to exclude elements of the proposal
from the charter or to include new elements in the charter by mutual agreement of
the school district board and the applicant.

(4) An initial charter may
be in effect for no more than five years and may be renewed by the sponsor.

(5) The first renewal of
a charter must be for the same number of years as the initial charter.

(6) Subsequent renewals of
a charter must be for a minimum of five years but may not exceed 10 years.

(7) A sponsor and the charter
school governing body may amend a charter at any time by joint agreement.

Public Charter School Mediation
Provided by the State Board of Education

(1) If the school district board and
the applicant are unable to agree on a change during the proposal or chartering
process, the school district board or the applicant may request mediation by the
State Board of Education.

(2) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct mediation. The Superintendent
or designee shall follow the procedures and timelines required by this rule. This
delegation to the Superintendent or designee includes, but is not limited to:

(a) Determining the form,
contents, and timelines of the mediation; and

(b) Determining the records
required for mediation and ordering the production of those records from the school
district board, applicant, or public charter school governing body and establishing
timelines for the production of those records.

(3) If the school district
board and the applicant are unable to reach an agreement following mediation as
provided in this section of rule, the most recent proposal submitted without the
change that was the subject of mediation shall be the proposal the school district
board and applicant address in the next step of the proposal or chartering process
following the point at which mediation began.

(1) School district boards may develop
timelines, policies and procedures for receiving, evaluating and approving or disapproving
proposals within the parameters set out in ORS 338.

(2) School district board
timelines, policies and procedures for receiving, evaluating and approving or disapproving
proposals may require coordination of charter proposal development with the district's
budgeting, student enrollment or operational timelines as necessary to demonstrate
that the proposed charter school would meet the requirements of ORS 338.

(3) Upon request from a school
district, the State Board of Education may extend any timeline required in ORS 338
if the school district board can demonstrate good cause for the extension.

Consistent with ORS 326.111, the State
Board of Education delegates to the Superintendent of Public Instruction or the
Superintendent's designee the authority to grant extensions of timelines. The Superintendent
or designee may grant an extension, upon request from a school district, if the
district has good cause for requesting an extension of the timeline for:

(1) A public charter school may petition
the State Board of Education for a waiver of any provision of ORS 388. The written
petition must specify the reason(s) the charter school is seeking the waiver and
any other relevant information.

(2) The public charter school
must notify the sponsor if a waiver under this section is being considered. Waivers
granted by the State Board to a charter school may require amending the charter
under the provisions of OAR 581-026-0100 (7).

(3) The State Board of Education,
upon receipt of a waiver petition, will review the petition and may grant the waiver
upon a showing that approving the waiver would:

(a) Promote the development
of programs by providers;

(b) Enhance the equitable access
by underserved families to the public education of their choice;

(c) Extend the equitable access
to public support by all students; or

(d) Permit the development of
high quality programs of unusual cost.

(4) The State Board of Education
may not waive any review provision under the Act or any provision under ORS 338.115(1).

(1)(a) A public charter school required
to comply with ORS 338.035(2)(a)(B) and (C) shall have an annual audit of the accounts
of the public charter school prepared in accordance with the Municipal Audit Law,
ORS 297.405 to 297.555 and 297.990.

(b) A public charter school
that is not required to comply with ORS 338.035(2)(a)(B) and (C) as provided by
ORS 338.035(2)(b), must comply with OAR 581-026-0200 and must be included in the
audit of the sponsoring district. The district audit for the public charter school
must minimally include:

(A) An audit of all accounts
and funds associated with the public charter school;

(B) A summary of significant
accounting policies, cash and investments, and internal controls; and

(C) A statement of activities
and a balance sheet containing a summary of the assets and liabilities of the public
charter school as of the closing date of the preceding annual audit period for the
school.

(2) After an audit, the public
charter school shall forward a copy of the annual audit to the Department of Education.

(3) After an audit, the public
charter school shall forward the following to the sponsor:

(a) A copy of the annual audit;

(b) Any statements from the
public charter school that show the results of all operations and transactions affecting
the financial status of the public charter school during the preceding annual audit
period for the school; and

(c) A balance sheet containing
a summary of the assets and liabilities of the public charter school as of the closing
date of the preceding annual audit period for the school.

(1) All statutes and rules that apply
to public charter schools also apply to virtual public charter schools. In addition,
virtual public charter schools must also meet additional statutory requirements
found in ORS Chapter 338.

(2) As used in ORS Chapter
338 and the rules of the State Board of Education, “virtual charter school”
means a public charter school that provides online courses. An online course is
a course in which:

(a) Instruction and content
are delivered primarily on a computer using the internet other electronic network
or other technology such as CDs or DVDs;

(b) The student and teacher
are in different physical locations for a majority of the student’s instructional
period while participating in the course;

(c) The online instructional
activities are integral to the academic program of the school as described in its
charter; and

(d) The student is not required
to be located at the physical location of a school while participating in the course.

(3) Notwithstanding subsection
(2) of this rule, “virtual public charter school” does not include a
public charter school that primarily serves students in a physical location. A charter
school is not a virtual public charter school if the schools meet all of the following
requirements:

(a) More than 50 percent
of the core courses offered by the school are offered at a physical location and
are not online courses:

(b) More than 50 percent
of the total number of students attending the school are receiving instructional
services at a physical location and not in an online course; and

(c) More than 50 percent
of the minimum number of instructional hours required to be provided to students
by the school under OAR 581-022-1620 during a school year are provided at a physical
location and not through an online course.

(4) As used in this rule:

(a) “Core course”
means:

(A) English language arts
including reading and writing;

(B) Mathematics;

(C) Science:

(D) Social sciences including
history, civics, geography and economics

(E) Physical education;

(F) Health

(G) The arts;

(H) World languages and

(I) Career and technical
education

(b) “Physical location”
means a facility that is owned, leased or otherwise used by a school to deliver
educational services. “Physical location” includes, but is not limited
to, a school, library, public building or other physical space utilized by the school.
“Physical location” does not include a student’s home.

(c) “Public charter
school” has the meaning given that term in ORS 338.005.

(5) This rule does not apply
to programs or courses offered by school districts, education service districts,
alternative education programs or the Oregon Virtual School District.

(c) “Reside in a school
district” means the school district in which the student’s parent resides.

(d) “School district”
means a school district in which more than three percent of the students who reside
in the school district are enrolled in one or more virtual public charter schools.

(e) “Student”
means a student who seeks to enroll in a virtual public charter school on or after
August 2, 2011.

(f) “Virtual public
charter school” is as that term is defined in OAR 581-026-0300.

(2) A parent must provide
notice to the school district in which the parent resides that the parent intends
to enroll a student in a virtual public charter school. Upon receiving the notice,
a school district may choose to do nothing further until receiving notice the student
is enrolled in the school or if more than three percent of the students who reside
in the school district are enrolled in virtual public charter schools not sponsored
by the district, the district must provide notice to the parent that the district:

(a) Approves the student
for enrollment in the virtual public charter school; or

(b) Does not approve the
student for enrollment in the virtual public charter school and provide a copy of
this rule and OAR 581-026-0310 to the student and a list of two or more other online
options available to the student.

(3) If a parent does not
receive a notice of approval or disapproval from a school district under subsection
(2) of this rule within 14 days of sending the notice of intent to enroll to the
district, the student shall be deemed approved for enrollment by the district.

(4) A parent may appeal a
decision of a school district to not approve a student for enrollment to the State
Board of Education pursuant to OAR 581-026-0310.

(5) A virtual public charter
school may only enroll a student if the school receives evidence the student’s
parent has notified the resident school district of the student’s intent to
enroll in the school. A school shall consider any of the following as evidence the
resident school district received adequate notice:

(a) A copy of the notice
of intent to enroll sent to the district by the parent;

(b) A notice of approval
for enrollment from the district; or

(c) A copy of a final order
issued by the Superintendent pursuant to OAR 581-026-0310 that finds that the student
is approved for enrollment in the school.

(6) A virtual public charter
school shall send a list of students to each school district in which a student
who is enrolled in the school resides. The list shall be sent monthly when the virtual
school is in session.

(7) If a school district
chooses to not approve a student for enrollment in a virtual public charter school
under this section, the district must have a policy that at a minimum includes the
following:

(a) The annual, semiannual
or other date that the school district used to calculate whether or not three percent
or more of the students who reside within the district are enrolled in a virtual
public charter school.

(b) The description of the
data used by the school district to calculate the number of students who reside
in the district and the number of students who are enrolled in virtual public charter
schools. A school district is only required to use data that is reasonably available
to the district including but not limited to:

(A) The number of students
enrolled in the schools of the school district;

(B) The number of students
enrolled in public charter schools located in the school district;

(C) The number of students
enrolled in virtual public charter schools;

(D) The number homeschooled
students who reside within the district and who have registered with an education
service district; and

(E) The number of students
enrolled in private schools located within the school district.

(1) The State Board of Education delegates
to the Superintendent of Public Instruction or designee all administrative functions
necessary or reasonable in order to conduct a timely appeal process. This delegation
includes issuing a final order. An order issued by the Superintendent or designee
shall be considered an order in other than a contested case under ORS 183.484.

(2) A parent may appeal a
decision of a school district to not approve enrollment of a student in a virtual
public charter school under OAR 581-026-0305 by sending a notice of appeal in writing
by mail, fax or e-mail or by personally delivering a copy to the Superintendent
of Public Instruction. The notice must be received by the Superintendent within
10 days of the date on which the parent received notice from the district, the district
did not approve enrollment of a student in a virtual public charter school. The
parent must also provide a copy of the notice of appeal and any other supporting
documents included with the notice to the school district prior to sending the notice
of appeal to the Superintendent or within 24 hours of when the parent sent or delivered
the notice of appeal to the Superintendent.

(3) The notice of appeal
must include:

(a) The parent and student’s
name and contact information.

(b) The name of the resident
school district.

(c) The name of the virtual
public charter school in which the student wants to enroll.

(d) A copy of the notice
of intent to enroll provided by the parent to the school district.

(e) A copy of the notice
of disapproval of enrollment received by the parent from the school district.

(f) The reason for the appeal
and any supporting documents including evidence the parent would like considered
as part of the appeal.

(4) A school district upon
receiving a notice of appeal from a parent may file a reply to the notice with the
Superintendent. The reply must be received by the Superintendent within 10 days
of when the school district received a copy of the notice of appeal from the parent.
The school district shall provide a copy of the reply and any supporting documents
included with the reply to the parent.

(5) The Superintendent shall
overturn the decision of the school district to not approve the enrollment of the
student if the Superintendent determines that:

(a) The school in which the
student intends to enroll is not a virtual public charter school.

(b) The resident school district
does not have more than three percent of the resident students of the district enrolled
in virtual public charter schools not sponsored by the district.

(c) The parent did not receive
the notice of disapproval from the district within 14 days of when the parent sent
the district the notice of intent to enroll.

(6) The Superintendent may
consider the following in deciding whether to uphold or overturn a decision of the
school district to not approve the enrollment of a student:

(a) The health and safety
of the student.

(b) The student’s educational
needs and interests.

(c) The availability of other
online options to the student.

(d) Any other information
that the Superintendent deems relevant to the decision.

(7) The Superintendent shall
issue a final order within 30 days of receiving the notice of appeal from the parent.
The Superintendent shall send a copy of the final order to the parent, the school
district and the virtual public charter school.

(1) A public charter school governing
body must request renewal of the charter (contract) by the sponsor in writing at
least 180 days before expiration of the charter.

(2) When a sponsor has received
a written request from a public charter school governing body, the sponsor must
schedule and hold a public hearing on the renewal request within 45 days from the
receipt of the request for renewal.

(3) Within 30 days after
the public hearing, the sponsor must either:

(a) Renew the charter; or

(b) State in writing the
reasons for denying the renewal of the charter.

(4)(a) A sponsor must base
its decision to renew or not renew a charter on a good faith evaluation of whether
the charter school:

(A) Is in compliance with
state and federal laws;

(B) Is in compliance with
the terms of the prior charter;

(C) Is meeting or working
toward meeting the student performance goals and agreements specified in the charter
or any other written agreements between the sponsor and the public charter school
governing body;

(D) Is fiscally stable and
evidence that a sound financial management system described in the proposal submitted
under ORS 338.045 and incorporated into the written charter was used; and

(E) Is in compliance with
any renewal criteria specified in the previous charter, if any.

(b) As used in this section,
"good faith evaluation" means an evaluation of all criteria required by this section
resulting in a conclusion that a reasonable person would come to who is informed
of the law and the facts before that person.

(5) The sponsor must base
the evaluation described in subsection (4) of this rule primarily on a review of
the public charter school's annual performance reports, annual audit of accounts
and annual site visit and review as required by ORS 338.095 and any other information
mutually agreed upon by the public charter school governing body and the sponsor.

(6)(a) If the sponsor renews
the charter, the sponsor and public charter school governing body shall negotiate
in good faith a new charter within 90 days after the date on which the sponsor approved
the renewal of the charter, unless both parties agree to an extension of time.

(b) If the sponsor and the
charter school governing body have not executed a new charter agreement within 90
days after the date on which the sponsor approved the renewal of the charter or
an alternative date agreed to by both parties, the expiring charter shall remain
in effect until a new charter is negotiated.

(c) As used in this section,
"negotiate in good faith" means to negotiate with an honest exchange of the facts
of the matters under consideration with a view to obtaining agreement of each of
the parties involved.

(7) If the sponsor does not
renew the charter, the public charter school governing body may address the reasons
for nonrenewal and resubmit its request to the sponsor within 30 days after the
date on which the sponsor notified the public charter school governing body of the
decision not to renew the charter. If a sponsor receives a revised request under
this section, the sponsor shall review the request using the process required by
subsections (2) to (6) of this rule. A public charter school governing board may
only submit a revised request once under this section unless otherwise specified
by the sponsor.

(8) Notwithstanding subsections
(1) to (7) of this rule, a sponsor and a public charter school governing body may
agree in the charter of the school to a timeline for renewing the charter that is
different from the timeline required by subsections (1) to (7) of this rule.

(9) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to determine if the charter of a school
sponsored by the state board should be renewed. The Superintendent or designee shall
follow the procedures and timelines required by this rule. This delegation to the
Superintendent or designee includes, but is not limited to:

(a) Determining the form,
contents, and timelines of the renewal;

(b) Determining the records
required for determining the renewal and ordering the production of those records
from the public charter school governing body and establishing timelines for the
production of those records;

(c) Requiring the charter
school governing body to respond to written or oral inquiries related to the sponsorship;

(d) Delegating the sponsorship
function to Department of Education staff or a hearings officer to conduct a hearing
and to issue a proposed order; and

(e) Issuing a final order.

(10) If the sponsor does
not renew the charter based on the revised request for renewal submitted under subsection
(7) of this rule, the public charter school governing body may:

(a) If the sponsor is a school
district, appeal the decision of the sponsor to the State Board of Education under
OAR 581-026-0405.

(b) If the sponsor is the
State Board of Education, seek judicial review of the final order under ORS 183.484.

(1) Within 30 days of receiving notice
from a sponsor that the sponsor has decided not to renew the charter (contract)
based on a revised request for renewal, a public charter school governing body may
request the State Board of Education review the decision by the sponsor not to renew
a charter. Any notice of a request for State Board review must be made in writing
and be delivered to the State Board of Education and the business address of the
sponsor.

(2) The decision of a sponsor
not to renew a charter must be based on a good faith evaluation of the factors set
out in ORS 338.065(6) and must utilize the process set out in 338.065(4) and OAR
581-026-0400.

(3) The State Board, State
Superintendent or designee will review the decision of a sponsor not to renew a
charter for compliance with the requirements of subsection (2) of this rule.

(4) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct a timely review of the decision
of the sponsor to not renew a charter. This delegation to the Superintendent includes,
but is not limited to:

(a) Determining the form,
contents, and timelines of the petition for review;

(b) Determining the records
required for review and ordering the production of those records from either the
public charter school governing body or school district board and establishing timelines
for the production of those records;

(c) Requiring the public
charter school governing body or school district board to respond to written or
oral inquiries related to board review;

(d) Delegating the review
function to department staff or a hearings officer conduct the review and issue
a proposed order; and

(e) Issuing a final order.

(5) If the State Superintendent
or designee finds that the sponsor made the decision to not renew a charter based
on a good faith evaluation of the factors set out in ORS 338.065(6) and utilized
the process set out in 338.065(4), a final order will be issued to uphold the decision
of the sponsor.

(6) If the State Superintendent
or designee finds that the sponsor did not make the decision to not renew a charter
based on a good faith evaluation of the factors set out in ORS 338.065(6), did not
utilize the process set out in 338.065(4) or both, a final order will be issued
to order the sponsor to reconsider the request for renewal utilizing the process
and requirements set out in OAR 581-026-0400.

(7) The State Superintendent
or designee shall issue the final order within 60 days from the receipt of the request
for review, unless both parties agree to a different timeline.

(8) If a school district
on reconsideration ordered under subsection (6) of this rule does not renew the
charter, the sponsor's decision may be appealed under the provisions of ORS 183.484.

(9) A charter school that
requested renewal of its charter by the sponsor in writing at least 180 days before
expiration of the charter shall remain open under the terms of its charter, unless
otherwise agreed to by the charter school and the sponsor, until one or more of
the following occurs:

(a) The sponsor and the charter
school execute a new charter.

(b) The sponsor denies the
renewal of the charter and the time period for the charter school to resubmit a
renewal request or appeal the decision to the State Board of Education has lapsed.

(c) The State Superintendent
or designee issues a final order to uphold the decision of the sponsor to not renew.

(d) The State Superintendent
or designee issues a final order that orders the school district to reconsider the
decision to non-renew and the school district again notifies the charter school
of a nonrenewal.

(e) A court orders the closure
of the school.

(f) The charter of the school
is terminated under ORS 338.105 and OARs 581-026-0500 and 581-026-0505.

(a) Meet the terms of the
approved charter or any requirement of ORS Chapter 338, unless waived by the State
Board of Education;

(b) Meet the requirements
for student performance as established in the approved charter;

(c) Correct any violation
of a federal or state law described in ORS 338.115;

(d) Maintain insurance as
described in the approved charter;

(e) Maintain financial stability;
or.

(f) If the charter is terminated
on or after July 1, 2011, failure to maintain, for one or more consecutive years,
a sound financial management system described in the proposal submitted under ORS
338.045 and incorporated into the written charter under 338.065.

(2) A sponsor intending to
terminate an approved charter must:

(a) Notify the public charter
school governing body in writing at least 60 calendar days prior to the proposed
effective date of the termination;

(b) Include in the notification
the grounds for the termination; and

(c) Deliver the notice to
the business address of the charter school.

(3) If the grounds for termination
include failure to maintain financial stability or failure to maintain a sound financial
management system, the sponsor and the public charter school may agree to develop
a plan to correct deficiencies. The plan must be finalized and agreed upon within
30 days of the notice of termination. Under a plan to correct deficiencies:

(a) The sponsor shall identify
a date at least 60 days from the date of the notice by which the public charter
school may attempt to correct any deficiencies related to financial stability or
to a sound financial management system. The deadline identified in the plan to correct
deficiencies may be extended by mutual agreement of the sponsor and the public charter
school;

(b) The proposed effective
date of the termination may be extended to the date identified under subparagraph
(a) of this paragraph.

(c) The sponsor may withhold
up to 50 percent of the moneys owed to the public charter school while the public
charter school is on the plan to correct deficiencies unless the withholding would
create undue hardship. The sponsor shall indicate if it plans to withhold moneys
within 10 days of the notice of termination.

(A) For the purpose of this
section, “undue hardship” shall be defined as a significant and limiting
factor in the public charter school’s ability to continue operating through
the duration of the plan to correct deficiencies under subparagraph (a) of this
paragraph and project a positive ending fund balance for 2 consecutive fiscal years
following compliance with the plan.

(B) A public charter school
attempting to prove undue hardship must provide the following evidence to the sponsor
within 20 days of the notice of termination:

(i) A current balance sheet;

(ii) A current profit and
loss statement;

(iii) All current financial
statements showing assets and liabilities; and

(iv) Any other financial
documents requested by the sponsor related to the financial operation of the public
charter school.

(C) The sponsor must evaluate
the public charter school’s evidence of undue hardship and determine whether
or not to withhold any moneys within 10 days of receiving the evidence from the
public charter school. If the sponsor plans to withhold moneys, the sponsor shall
indicate in the plan to correct deficiencies the terms of any withholding of moneys.

(d) The sponsor must hold
in trust any moneys withheld under subparagraph (c) of this paragraph until:

(A) The public charter school
complies with the plan to correct deficiencies, at which time the public charter
school is entitled to the moneys held in trust; or

(B) The public charter school
fails to comply with the plan to correct deficiencies, at which time the charter
is terminated and the public charter school forfeits any claim to the moneys held
in trust.

(e) The sponsor shall apply
any moneys withheld under subparagraph (c) of this paragraph if the public charter
school is terminated to the debts of the public charter school. Any remaining moneys
shall be returned to the state.

(4) The governing body of
a public charter that has received notice from the sponsor of the sponsor's intent
to terminate the charter may request a hearing by the sponsor related to a termination
of the charter or a plan to correct deficiencies. Such a request must be made in
writing and be delivered to the business address of the sponsor. Within 30 days
of receiving the request for a hearing, the sponsor must provide the public charter
school with the opportunity for a hearing.

(5) Following a notice of
termination or completion of the plan to correct deficiencies, the sponsor of a
public charter school shall make a final decision whether to terminate the public
charter school.

(a) If the sponsor is a school
district board or the State Board, the decision must be made at a public meeting.

(b) If the sponsor is an
institution of higher education, the decision must be made as defined by the institution’s
rules or policy.

(6) If the sponsor reasonably
believes that a public charter school is endangering the health or safety of the
students enrolled in the public charter school, the sponsor may act to immediately
terminate the approved charter and close the public charter school without providing
the notice requirements set out in subsection (4) of this rule.

(7) The governing body of
a public charter that is closed under the provisions of subsection (6) of this rule
may request a hearing by the sponsor. Such a request must be made in writing and
be delivered to the business address of the sponsor. Within 10 days of receiving
the request for a hearing, the sponsor must provide the public charter school with
the opportunity for a hearing on the termination.

(8) Nothing in this rule
should be construed as limiting the ability of a sponsor and a public charter school
to include in the charter a procedural requirement for alternative dispute resolution
prior to invoking the termination process.

(1) A public charter school governing body
may request the State Board of Education review the decision to terminate a charter.
The State Board of Education’s review shall be limited to the grounds for
termination as stated by the school district board or sponsor or a plan to correct
deficiencies. Any notice of a request for State Board review must be made in writing
and be delivered to the State Board of Education and the business address of the
sponsor.

(2) The State Board of Education
delegates to the Superintendent of Public Instruction or designee all administrative
functions necessary or reasonable in order to conduct a timely review. This delegation
to the Superintendent includes, but is not limited to:

(a) Determining the form, contents,
and timelines of the petition for review;

(b) Determining the records
required for review and ordering the production of those records from either the
public charter school governing body or school district board and establishing timelines
for the production of those records;

(c) Requiring the public charter
school governing body or school district board to respond to written or oral inquiries
related to board review;

(d) Delegating the review function
to a hearings officer to hold a contested case hearing under ORS 183. 411 through
183.470 and issue a proposed order; and

(e) Issuing a final order that
may be appealed under the provisions of ORS 183.484.

(3) The State Board, or its
designee, will where possible, issue its final order within 60 days from the sponsor's
notification of intent to terminate as required in ORS 338.105(2). If it is not
possible to issue the final order within 60 days, the charter school shall remain
open pending issuance of the final order.

(4) The governing body of a
public charter school that is closed under the provisions of ORS 338.105(4) may
request the State Board of Education, or its designee, to review the decision of
the sponsor to terminate the charter and close the public charter school. The State
Board of Education, or its designee, will hold a hearing within 10 days of receiving
the request for review. The review under this section will be accomplished under
the provisions of subsection (2) of this rule and under the timelines set out in
ORS 338.105(4) and, to the extent practicable, subsection (3) of this rule.

Process for Charter School Governing
Body to Terminate Charter and Dissolve Public Charter School

The governing body of a public charter
school may only terminate, dissolve or close an operating public charter school
at the end of a semester. The governing body must provide the sponsor with notice
of the intent to terminate the charter, and close and dissolve the public charter
school, at least 180 days before the proposed date of termination, closure and dissolution.
Such notice must be made in writing and be delivered to the business address of
the sponsor.

Distribution of Assets of a Terminated
or Dissolved Public Charter School

(1) Assets of a terminated, closed or
dissolved public charter school that were obtained with public funds will be given
to the State Board of Education. The State Board of Education, at its discretion,
may disburse these assets to school districts or to other public charter schools.

(2) Assets of a terminated,
closed or dissolved public charter that were obtained with grant funds will be disbursed
according to the terms of the grant. If the grant is absent any reference to ownership
or distribution of assets, assets of a terminated, closed or dissolved public charter
school will be disbursed according to the provision set out in subsection (1) of
this rule.

The official copy of an Oregon Administrative Rule is
contained in the Administrative Order filed at the Archives Division,
800 Summer St. NE, Salem, Oregon 97310. Any discrepancies with the
published version are satisfied in favor of the Administrative Order.
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